Vikas Ecotech, a leading provider of high-end specialty chemicals, has raised approximately Rs 50 crore through the Qualified Institutional Placement (QIP) route, the company said in an exchange filing. The issue is now closed.
The issue was priced at Rs 2.80 per share, which is a discount of about 4 per cent compared to its floor price of Rs 2.92 per share. QIP is a way in which a firm issues shares to the public without regulatory compliance.
It allotted a total of 17.85 crore equity shares to qualified institutional buyers, amounting to Rs 49.98 crore.
As per the filing, its allottees include AG Dynamic Funds, Vikas Global Fund PCC- Yublia Capital Partners Fund-I and Calypso Global Investment Fund. The funds raised through the QIP route will be used to expand its business and meet working capital requirement.
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Earlier, the company had informed that it aims to raise Rs 100 crore through the issue. Under the first tranche, the company has raised Rs 50 crore, while the remaining Rs 50 crore will be raised through the second or subsequent tranches.
The Delhi-based firm had reported net sales of Rs 57.20 crore in the March 2023 quarter. It has significantly reduced debt as part of the debt-reduction plan and aims to become debt-free by the end of financial year 2023-24.
Its R&D division is a center recognized by the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology.
Vikas Ecotech is expanding its business portfolio by manufacturing steel pipes and MDPE (medium-density polyethylene) pipes. Last month, the company forayed into the real estate sector by developing commercial and residential projects in Gurugram, Haryana.
The firm deals in specialty chemical industry. It supplies its products to a wide variety of industries including agriculture, automotive, cable, electricals, hygiene, healthcare, polymers, packaging, textiles and footwear. As per the shareholding pattern, promoters hold 9.3 per cent stake in the company, while the remaining 90.6 per cent is held by the public.